In addition to these necessary or convenient powers, the bill allows a universal
bank to engage in activities that are reasonably related or incident to the purposes
of the universal bank. With certain exceptions, a universal bank may engage in these
activities either directly or indirectly through a subsidiary. Under the bill, any
activity permitted under the federal Bank Holding Act satisfies the reasonably
related or incidental criterion. The bill also contains a list of specific activities that
meet the reasonably related or incidental criterion. The listed activities include: 1)
business and professional services; 2) data processing; 3) courier and messenger
services; 4) credit-related activities; 5) consumer services; 6) real estate-related
services; 7) insurance services, other than insurance underwriting; 8) securities
brokerage; 9) investment advice; 10) securities and bond underwriting; 11) mutual
fund activities; 12) financial consulting; 13) tax planning and preparation; 14)
community development and charitable activities; and 15) debt cancellation
contracts.
A universal bank may also engage in activities that the Division of Banking
determines are reasonably related or incidental to these listed activities. In addition,
the Division of Banking may determine that other activities are reasonably related
or incidental activities.
A universal bank must give 60 days' prior written notice to the Division of
Banking of the universal bank's intention to exercise a necessary or convenient
power or to engage in a reasonably related or incidental activity. The Division of
Banking may deny a universal bank the authority to exercise a necessary or
convenient power or to engage in a reasonably related or incidental activity, other
than an activity that is contained in the specific list of reasonably related or
incidental activities, if the Division of Banking determines that the activity is not a
reasonably related or incidental activity, that the financial institution is not
well-capitalized, that the financial institution is the subject of an enforcement
action, or that the financial institution does not have sufficient management
expertise for the activity. The Division of Banking may also require a universal bank
to engage in certain of these activities through a subsidiary, with appropriate
safeguards to limit the risk exposure of the universal bank. Amounts invested in a
single subsidiary that engages in these activities may not exceed 20% of the
universal bank's capital, unless a higher percentage is approved by the Division of
Banking.
Uniform commercial code
Currently, under this state's version of the Uniform Commercial Code, when
collateral is disposed of by a secured party following a default by the debtor, all

subordinate security interests and liens are discharged by the disposition of the
collateral, except liens held by this state or a local governmental unit. One result of
this exception is essentially to give priority to subordinate liens held by this state or
a local governmental unit. These liens include, for example, tax liens, liens related
to environmental clean-up payments, public assistance payments, wage claims,
unemployment and worker's compensation payments, and liens on aircraft for
nonpayment of certain fees. This bill deletes this exception and, in effect, grants
these liens the priority otherwise applicable to them under the law.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB2, s. 1 1Section 1. 93.01 (1m) of the statutes is amended to read:
AB2,11,102 93.01 (1m) "Business" includes any business, except that of banks, savings
3banks, credit unions, savings and loan associations , and insurance companies.
4"Business" includes public utilities and telecommunications carriers to the extent
5that their activities, beyond registration, notice, and reporting activities, are not
6regulated by the public service commission and includes public utility and
7telecommunications carrier methods of competition or trade and advertising
8practices that are exempt from regulation by the public service commission under s.
9196.195, 196.196, 196.202, 196.203, 196.219, or 196.499 or by other action of the
10commission.
AB2, s. 2 11Section 2. 186.01 (2) of the statutes is amended to read:
AB2,12,212 186.01 (2) "Credit union" means, except as specifically provided under ss.
13186.41 (1) and 186.45 (1),
a cooperative, nonprofit corporation, incorporated under
14this chapter to encourage thrift among its members, create a source of credit at a fair

1and reasonable cost, and provide an opportunity for its members to improve their
2economic and social conditions.
AB2, s. 3 3Section 3. 186.02 (2) (a) 1. of the statutes is amended to read:
AB2,12,54 186.02 (2) (a) 1. The conditions of residence or occupation which qualify persons
5that determine eligibility for membership.
AB2, s. 4 6Section 4. 186.02 (2) (b) 2. of the statutes is amended to read:
AB2,12,147 186.02 (2) (b) 2. Residents Except as otherwise provided in this subdivision,
8individuals who reside or are employed
within a well-defined neighborhood,
9community or rural district
and contiguous neighborhoods and communities. If the
10office of credit unions, subsequent to a credit union merger, determines that it would
11be inappropriate under the circumstances to require members of the credit union
12that results from the merger to reside or be employed in contiguous neighborhoods
13and communities, the requirement that these neighborhoods and communities be
14contiguous does not apply
.
AB2, s. 5 15Section 5. 186.02 (2) (b) 2m. of the statutes is created to read:
AB2,12,1716 186.02 (2) (b) 2m. Individuals who reside or are employed within well-defined
17and contiguous rural districts or multicounty regions.
AB2, s. 6 18Section 6. 186.02 (2) (c) of the statutes is amended to read:
AB2,12,2319 186.02 (2) (c) Members of the immediate family of all qualified persons are
20eligible for membership. In this paragraph, "members of the immediate family"
21include the wife, husband, parents, stepchildren and children of a member whether
22living together in the same household or not and any other relatives of the member
23or spouse of a member living together in the same household as the member.
AB2, s. 7 24Section 7. 186.02 (2) (d) of the statutes is renumbered 186.02 (2) (d) 1. and
25amended to read:
AB2,13,4
1186.02 (2) (d) 1. Organizations and associations An organization or association
2of individuals, the majority of whom the directors, owners, or members of which are
3eligible for membership, may be admitted to membership in the same manner and
4under the same conditions as individuals.
AB2, s. 8 5Section 8. 186.02 (2) (d) 2. of the statutes is created to read:
AB2,13,86 186.02 (2) (d) 2. An organization or association that has a business location
7within any geographic limits of the credit union's field of membership may be
8admitted to membership.
AB2, s. 9 9Section 9. 186.06 (4) of the statutes is amended to read:
AB2,13,1210 186.06 (4) Fiscal year. The fiscal year of every credit union shall end at the
11close of business on December 31 and the credit union shall, at least semiannually,
12transfer funds as provided in s. 186.17
.
AB2, s. 10 13Section 10. 186.07 (3m) of the statutes is created to read:
AB2,13,2114 186.07 (3m) Written consent in lieu of meeting. (a) Unless the articles of
15incorporation or bylaws provide otherwise, any action required or permitted by this
16chapter to be authorized at a board of directors' meeting may be authorized without
17a meeting if that action is authorized by all directors and is evidenced by one or more
18written statements, signed by each director, describing and consenting to the action.
19Such an action has the same effect as an action authorized by unanimous vote at a
20meeting at which all directors are present and may be described as such in any
21document.
AB2,13,2422 (b) Any action authorized under par. (a) is effective when the last director signs
23the statement evidencing his or her consent, unless the statement specifies a
24different effective date.
AB2,14,2
1(c) A credit union shall retain all statements signed by its directors under par.
2(a).
AB2, s. 11 3Section 11. 186.11 (4) (title) of the statutes is amended to read:
AB2,14,54 186.11 (4) (title) Investment in credit union service corporations
5organizations.
AB2, s. 12 6Section 12. 186.11 (4) (a) of the statutes is renumbered 186.11 (4) (a) (intro.)
7and amended to read:
AB2,14,128 186.11 (4) (a) (intro.) A Unless the office of credit unions approves a higher
9percentage, a
credit union may invest not more than 1.5% of its total assets in the
10capital shares or obligations of a credit union service corporation organizations that,
11in the opinion of the office of credit unions, are sufficiently bonded and insured and
12that satisfy all of the following:
AB2,14,14 132. Are organized primarily to provide goods and services to credit unions, credit
14union organizations and credit union members.
AB2, s. 13 15Section 13. 186.11 (4) (a) 1. of the statutes is created to read:
AB2,14,1816 186.11 (4) (a) 1. Are corporations, limited partnerships, limited liability
17companies, or other entities that are permitted under the laws of this state and that
18are approved by the office of credit unions.
AB2, s. 14 19Section 14. 186.11 (4) (b) of the statutes is repealed and recreated to read:
AB2,14,2120 186.11 (4) (b) A credit union service organization under par. (a) may provide
21any of the following services related to the routine daily operations of credit unions:
AB2,14,2422 1. Checking and currency services, check cashing services, money order
23services, savings bond services, traveler's check services, and services regarding the
24purchase and sale of U.S. mint commemorative coins.
AB2,15,4
12. Clerical, professional, and management services, including, but not limited
2to, accounting, courier, credit analysis, facsimile transmission and copying, internal
3credit union audit, locator, management and personnel training and support,
4marketing, research, and supervisory committee audit services.
AB2,15,55 3. Consumer mortgage loan origination services.
AB2,15,96 4. Electronic transaction services, including, but not limited to, remote
7terminal, credit and debit card, data processing, electronic fund transfer, electronic
8income tax filing, payment item processing, wire transfer, and Internet financial
9services.
AB2,15,1310 5. Tax preparation services, services regarding the development and
11administration of individual retirement accounts, Keogh plans, deferred
12compensation plans, and other personnel benefit plans, and financial counseling
13services, including, but not limited to, estate planning.
AB2,15,1614 6. Fixed asset services, including, but not limited to, the management,
15development, sale, or lease of fixed assets and the sale, lease, or servicing of computer
16hardware or software.
AB2,15,1917 7. Insurance brokerage or agency services, including, but not limited to,
18providing vehicle warranty programs, providing group insurance purchasing
19programs, and acting as an agent for the sale of insurance.
AB2,15,2120 8. Services with regard to the leasing of real property owned by the credit union
21service organization or personal property.
AB2,15,2422 9. Loan support services, including, but not limited to, debt collection and loan
23processing, servicing, and sales services and services regarding the sale of
24repossessed collateral.
AB2,16,3
110. Record retention, security, and disaster recovery services, including, but
2not limited to, alarm monitoring, data storage and retrieval, and record storage
3services and providing forms and supplies.
AB2,16,44 11. Securities brokerage services.
AB2,16,55 12. Shared credit union branch operations.
AB2,16,66 13. Student loan origination services.
AB2,16,77 14. Travel agency services.
AB2,16,108 15. Trust and other fiduciary services, including, but not limited to, acting as
9an administrator for prepaid legal services plans or acting as a trustee, guardian,
10conservator, estate administrator, or in any other fiduciary capacity.
AB2,16,1111 16. Real estate brokerage services.
AB2, s. 15 12Section 15. 186.11 (4) (bd) and (bh) of the statutes are created to read:
AB2,16,2113 186.11 (4) (bd) The office of credit unions may expand the list of services under
14par. (b) that are related to the routine daily operations of credit unions. Any service
15approved under this paragraph shall be authorized for all credit union service
16organizations under par. (a). A credit union may file a written request with the office
17of credit unions to exercise its authority under this paragraph and may include,
18along with the request, a description of any proposed service and an explanation of
19how that service is related to the routine daily operations of credit unions. Within
2060 days after receiving a request under this paragraph, the office of credit unions
21shall approve or disapprove the request.
AB2,17,322 (bh) A credit union service organization under par. (a) may provide any service
23described under par. (b) or approved under par. (bd) through an investment by the
24credit union service organization in a third-party service provider. The amount that
25a credit union service organization may invest in a third-party service provider

1under this paragraph may not exceed the amount necessary to obtain the applicable
2services, or a greater amount if necessary for the credit union service organization
3to obtain the services at a reduced cost.
AB2, s. 16 4Section 16. 186.11 (4) (c) of the statutes is amended to read:
AB2,17,65 186.11 (4) (c) A credit union service corporation organization may be subject
6to audit by the office of credit unions.
AB2, s. 17 7Section 17. 186.113 (1) of the statutes is amended to read:
AB2,17,138 186.113 (1) Branch offices. If the need and necessity exist and with With the
9approval of the office of credit unions, establish branch offices inside this state or no
10more than 25 miles
or outside of this state. Permanent records may be maintained
11at branch offices established under this subsection. In this subsection, the term
12"branch office" does not include a remote terminal, a limited services office, or a
13service center.
AB2, s. 18 14Section 18. 186.113 (1m) (a) (intro.) of the statutes is amended to read:
AB2,17,1715 186.113 (1m) (a) (intro.) Establish Before the effective date of this paragraph
16.... [revisor inserts date], establish
limited services offices outside this state to serve
17any member of the credit union if all of the following requirements are met:
AB2, s. 19 18Section 19. 186.113 (6) (b) and (c) of the statutes are amended to read:
AB2,17,2119 186.113 (6) (b) Act as trustees or custodians of member tax deferred retirement
20funds, individual retirement accounts, medical savings accounts, or other employee
21benefit accounts or funds
permitted by federal law to be deposited in a credit union.
AB2,17,2322 (c) Act as a depository for member-deferred member qualified and
23nonqualified deferred
compensation funds as permitted by federal law.
AB2, s. 20 24Section 20. 186.113 (11) of the statutes is renumbered 186.113 (11) (a) and
25amended to read:
AB2,18,1
1186.113 (11) (a) Have Offer deposit accounts to members.
AB2, s. 21 2Section 21. 186.113 (11) (b) of the statutes is created to read:
AB2,18,83 186.113 (11) (b) Offer deposit accounts to any person if the credit union satisfies
4the requirements specified in 12 CFR 701.34 (a) for designation as a low-income
5credit union and files a statement with the office of credit unions agreeing to be bound
6by requirements and conditions that are substantially identical to those imposed by
7the national board and the national credit union administration on federal credit
8unions designated under 12 CFR 701.34 (a).
AB2, s. 22 9Section 22. 186.113 (24) of the statutes is created to read:
AB2,18,1110 186.113 (24) Funeral trusts. Accept deposits made by members for the
11purpose of funding burial agreements by trusts created pursuant to s. 445.125.
AB2, s. 23 12Section 23. 186.113 (25) of the statutes is created to read:
AB2,18,1413 186.113 (25) Sale of insurance products. Sell insurance, annuities, and
14related products.
AB2, s. 24 15Section 24. 186.17 (1) of the statutes is repealed and recreated to read:
AB2,18,1816 186.17 (1) Regular reserves. A credit union shall establish and maintain a
17regular reserve account and shall transfer amounts to the regular reserve account
18as required by the national board.
AB2, s. 25 19Section 25. 186.20 of the statutes is created to read:
AB2,18,22 20186.20 Financial privacy. A credit union shall comply with any applicable
21requirements under 15 USC 6801 to 6803 and any applicable regulations prescribed
22by the national credit union administration under 15 USC 6804.
AB2, s. 26 23Section 26. 186.22 (12m) of the statutes is amended to read:
AB2,18,2524 186.22 (12m) Meetings of directors. Section 186.07 (3) and (3m) applies to
25a credit union finance corporation.
AB2, s. 27
1Section 27. 186.235 (7) (a) (intro.) of the statutes is amended to read:
AB2,19,72 186.235 (7) (a) (intro.) Employees of the office of credit unions and members
3of the review board shall keep secret all the facts and information obtained in the
4course of examinations, except or contained in any report provided by a credit union
5other than any semiannual or quarterly financial report that is regularly filed with
6the office of credit unions. This requirement does not apply
in any of the following
7situations:
AB2, s. 28 8Section 28. 186.235 (7) (c) of the statutes is created to read:
AB2,19,129 186.235 (7) (c) If any person mentioned in par. (a) discloses any information
10about the private account or transactions of a credit union or any information
11obtained in the course of an examination of a credit union, except as provided in pars.
12(a) and (b), that person is guilty of a Class I felony.
AB2, s. 29 13Section 29. 186.235 (7m) of the statutes is created to read:
AB2,19,1614 186.235 (7m) Return of examination reports. Examination reports possessed
15by a credit union are confidential, remain the property of the office of credit unions,
16and shall be returned to the office of credit unions immediately upon request.
AB2, s. 30 17Section 30. 186.235 (16) (a) of the statutes is renumbered 186.235 (16) and
18amended to read:
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